nep-ino New Economics Papers
on Innovation
Issue of 2022‒07‒25
eight papers chosen by
Uwe Cantner
University of Jena

  1. Great expectations: the promises and limits of innovation policy in addressing societal challenges By Laatsit, Mart; Grillitsch, Markus; Fünfschilling, Lea
  2. Public support prevalence and innovation behavior. Uruguay 2007-2015. By Liliana Gelabert; Martín Pereyra; Flavia Roldán
  3. Mapping Markush By Stefan Wagner; Christian Sternitzke; Sascha Walter
  4. Regional perspectives on socio-technical transitions: Combining research insights from geography of innovation and transition studies By Hansmeier, Hendrik; Koschatzky, Knut; Zenker, Andrea; Stahlecker, Thomas
  5. Linking the ‘Recovery and Resilience Plan’ and Smart Specialisation. The Spanish Case By Ana Fernández-Zubieta
  6. A Culture of Ambitious Entrepreneurship By Erik Stam
  7. The trickle down from environmental innovation to productive complexity By Francesco de Cunzo; Alberto Petri; Andrea Zaccaria; Angelica Sbardella
  8. Linking the ‘Recovery and Resilience Plan’ and Smart Specialisation. The Italian Case By PROTA Francesco; VIESTI Gianfranco

  1. By: Laatsit, Mart (CIRCLE, Lund University); Grillitsch, Markus (CIRCLE, Lund University); Fünfschilling, Lea (CIRCLE, Lund University)
    Abstract: In the policy discourse on societal challenges it has become common to think of innovation policy as the universal tool for addressing societal challenges. However, we argue that innovation policy has limits to what it can do, and for it to remain a useful tool for tackling societal challenges, it is necessary to re-assess its role. Thus, this paper addresses the following research questions: What are the theoretical implications of the augmented expectations of innovation policy to deliver system change, what role can innovation policy play in contributing to system change, and what conditions this role. Linking to the literature on wicked problems and radical innovations, we differentiate between disruptive and progressive system change, and show that the potential role of innovation policy differs between these two types of change. Acknowledging both the potential and limitations of innovation policy, we make a proposition for how an ambitious innovation policy contributing to system change may be conceived.
    Keywords: Innovation policy; System change; Societal challenges
    JEL: O38
    Date: 2022–07–04
  2. By: Liliana Gelabert (IE Univeristy); Martín Pereyra (Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departamento de Economía / CINVE); Flavia Roldán (Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departmento de Economía)
    Abstract: Using Uruguayan data from 2007 to 2015, we examine the role of the distribution of public support within sectors on the firm innovation efforts. Our empirical analysis shows that the manner in which public support is allocated within a sector affects a firm's incentives to undertake innovation expenditures. When public support for innovation activities is more equitably distributed within a sector, firms that persistently undertake innovation activities increase their innovation expenditures, whether or not they are direct recipients of support. These results highlight a new indirect mechanism by which innovation policy affects a firm's incentives to undertake private innovation.
    Keywords: innovation policy, innovation expenditure, Latin America.
    JEL: L10 L12
    Date: 2021–08
  3. By: Stefan Wagner (ESMT European School of Management and Technology); Christian Sternitzke (Sternitzke Ventures UG); Sascha Walter (University of Würzburg)
    Abstract: Markush structures are molecular skeletons containing not only specific atoms but also placeholders to represent broad sets of chemical (sub)structures. As genus claims, they allow a vast number of compounds to be claimed in a patent application without having to specify every single chemical entity. While Markush structures raise important questions regarding the functioning of the patent system, innovation researchers have been surprisingly silent on the topic. This paper summarizes the ongoing policy debate about Markush structures and provides first empirical insights into how Markush structures are used in patent documents in the pharmaceutical industry and how they affect important outcomes in the patent prosecution process. While not causing frictions in the patent prosecution process, patent documents con-taining Markush structures have an increased likelihood to restrict the patentability of follow-on inventions and to facilitate the construction of broad patent fences.
    Keywords: pharmaceutical industry, innovation, patents, Markush structures
    Date: 2022–07–11
  4. By: Hansmeier, Hendrik; Koschatzky, Knut; Zenker, Andrea; Stahlecker, Thomas
    Abstract: While societal challenges are global in nature, solving and addressing them usually tends to take place at smaller spatial scales. As place-specific technological, institutional and actor settings have a decisive influence on the direction, scope and speed of transformative dynamics, regions vary greatly in the generation and application of innovations required for socio-technical transitions. With a broader understanding of regional innovation systems (RIS), on the one hand, and spatial considerations in transition studies, on the other, geographic research has recently contributed to a better understanding of innovation-based structural and systemic change. At the same time, the research findings are still insufficiently linked with one another. We argue that recent theorizing on expanded regional innovation systems provides additional explanatory power in the context of sys-temic transitions by considering similar aspects, e.g. the role of experimentation and different modes of innovation, yet incorporating a more spatial perspective. Against this background, we show that innovation policies at the regional level seem to be particularly effective when they sup-port innovation dynamics aimed at sustainability through the inclusion of various actor groups and the attention to both the production and application side. Given the increasing spatial disparities in innovation dynamics, however, further research is needed on the opportunities and barriers of different regional settings for sustainability transitions.
    Date: 2022
  5. By: Ana Fernández-Zubieta (Complutense University of Madrid - (ICEI-UCM))
    Abstract: This study aims to analyse the alignment of investments in the Spanish ‘Recovery and Resilience Plan’ with the Smart Specialisation Strategies priorities (2021-2027) of the country and its regions to identify opportunities for potential synergies and complementary between funding instruments. The structure and methodology follows Marques Santos (2021) approach that has been applied in the Portuguese case study. This methodology uses the information available in the Plan and its annexes and establishes the steps for carrying out a detailed analysis to identify and to classify the investments and actions able to enhance Research and Development and Innovation (R&I) and regional innovation ecosystems. The analysis indicates that up to €20.5 Billion of the Spanish Plan (29% of available funding for 2021-2023) could potentially support directly and indirectly the Smart Specialisation processes in Spain. Similarly to the Portuguese case, the effect of the identified contributions will greatly depend on the final beneficiaries, project selected, absorption capacity, and governance model.
    Keywords: Covid-19 crisis; Innovation; Government Policy; Spain
    JEL: E32 O31 G38
    Date: 2022–06
  6. By: Erik Stam
    Abstract: In this paper we show that a culture of independent entrepreneurship and a culture of ambitious entrepreneurship are two distinct dimensions of culture in entrepreneurial ecosystems, and are differently related to Venture Capital, growth-oriented entrepreneurship and the prevalence of unicorns in a country. We map the different types of entrepreneurship around the globe, and show the extreme spatial unevenness of entrepreneurial outputs of entrepreneurial ecosystems. We analyze the unicorn production chain from Total Entrepreneurial Activity, to growth-oriented entrepreneurship, and unicorns, and how this connects to culture and capital.
    Keywords: entrepreneurial ecosystem, entrepreneurship, growth-oriented entrepreneurship, scale-ups, unicorns, venture capital, culture, ambition
    Date: 2021
  7. By: Francesco de Cunzo; Alberto Petri; Andrea Zaccaria; Angelica Sbardella
    Abstract: We study the empirical relationship between green technologies and industrial production at very fine-grained levels by employing Economic Complexity techniques. Firstly, we use patent data on green technology domains as a proxy for competitive green innovation and data on exported products as a proxy for competitive industrial production. Secondly, with the aim of observing how green technological development trickles down into industrial production, we build a bipartite directed network linking single green technologies at time $t_1$ to single products at time $t_2 \ge t_1$ on the basis of their time-lagged co-occurrences in the technological and industrial specialization profiles of countries. Thirdly we filter the links in the network by employing a maximum entropy null-model. In particular, we find that the industrial sectors most connected to green technologies are related to the processing of raw materials, which we know to be crucial for the development of clean energy innovations. Furthermore, by looking at the evolution of the network over time, we observe that more complex green technological know-how requires more time to be transmitted to industrial production, and is also linked to more complex products.
    Date: 2022–06
  8. By: PROTA Francesco; VIESTI Gianfranco
    Abstract: This study aims at analysing possible synergies between the Italian National Recovery and Resilience Plan and the Smart Specialisation Strategies for 2021-2027 of Italian regions. Although Smart Specialisation Strategies are not explicitly mentioned in the Plan, we found that sixteen initiatives have a strong link with S3s priority areas, and thirty-one initiatives can be classified as having a medium link. For the remaining initiatives the potential links are weak. Much can be done to increase coherence between S3 and recovery projects, even a posteriori, by considering how the two planning processes complement one another. Obviously, the effective achievement of synergies between the Italian National Recovery and Resilience Plan and the regional Smart Specialisation Strategies will depend on many factors; in particular, a good policy mix and the involvement of relevant regional actors within the governance of the Plan.
    Keywords: Recovery and Resilience Plan; Smart Specialisation Strategies; Covid-19 crisis; Innovation; Public policy; Italy.
    JEL: E32 O31 G38
    Date: 2022–06

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